After SkyCity's strategic review of its international business division the board has decided to “permanently cease dealing with all junket operators, effective immediately.”
In a stock exchange statement the company said "The SkyCity board has determined to permanently cease dealing with all junket operators, effective immediately, and continue to operate its international business division under a revised operating model."
Although the company didn't specify the reasons for the halt of junket operations this came after the Sydney-based casino Crown had an Australian inquiry launched. The inquiry took into consideration links to organised crime at Crown and found that operators posed a money laundering risk.
Junket operators work with casinos to usher in critical gamers to the venues. Their main role is to reach out to wealthy gamblers directly and lure them to the casino by offering luxury travel and accommodation promotions and other personalised services.
Back in November Crown stopped dealing with unlicensed junket operations after allegations of organised crime emerged resulting in regulators suspending the operational license for Crown’s new Sydney casino.
Junkets are responsible for a large portion of the casinos’ VIP revenue and it's not the first instance that junket operators were targeted by organised criminals to move dirty money through Australian casinos.
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